TC Client Sheds Mass Asbestos Claims through Strategic Chapter 11
By Kathleen Kraft
The Christy Refractories, Company, Inc. is a nearly 100 year old, family-owned manufacturer and distributor of refractory and insulation products, heating panels and similar products. Because of the decades-old activities of a company it purchased in 1995, Christy found itself the target of over 1,000 asbestos-related lawsuits through Missouri, Illinois and Texas. Taking advantage of special asbestos-related rules in the Bankruptcy Code, Christy filed for Chapter 11 and began negotiating with the asbestos claimants and its insurance carriers. Earlier this year, the Bankruptcy Court confirmed Christy's reorganization plan where all of the asbestos-related liabilities will be channeled into a litigation trust funded by contributions from Christy and certain of its insurers, all of whom received releases from any further asbestos-related liabilities. The end result is that Christy can survive and prosper into a second century unencumbered by future asbestos-related liabilities. David Warfield and Kathleen Kraft represented Christy in this matter.
TC Represents Lenders in Alternative Energy Project
By Dan Engle
Thompson Coburn represented the senior secured lenders in the workout of a $16 million loan to a troubled alternative energy project in Northwestern Missouri. The workout involved complex real estate and commercial law issues, together with very specialized tax credit issues. Through an innovative leasing arrangement negotiated and drafted by Thompson Coburn lawyers David Warfield and Dan Engle, the project is back on track.
TC Represents Lender in Distressed LSTA Transaction
Thompson Coburn recently represented one of its lending clients in the sale of its interest in a $235 million distressed syndicated loan. The sale, handled by TC attorney Mark Bossi, was controlled by standard documentation governing distressed trades as published by The Loan Syndications and Trading Association® (LSTA). LSTA trade documentation is frequently used in the purchase and sale of syndicated loans. While standardizing the sale and purchase process, LSTA documentation can be confusing and conceptually complicated. Thompson Coburn is an affiliate member of the LSTA and is experienced in LSTA documentation issues.
TC Attorneys Offer Client Educational Opportunities
By Mark Bossi
Over the past year, Thompson Coburn attorneys have offered high-quality, timely education to our clients using diverse forms of media and technology. We can provide informational or continuing education credited seminars to enhance your professional growth. Webinars have been particularly effective in informing clients and other audiences on topical financial restructuring issues, such as a seminar we offered this past May on Third Party Releases in Chapter 11 Plans. In-person or audio-conferences are also available at no charge to firm clients.
TC Represents Client in Acquisition of Debt and Foreclosure on Biodiesel Facility
By Cheryl Kelly
Thompson Coburn recently represented a client in the acquisition of a soybean-crushing and biodiesel facility located in Southwestern Missouri. The facility had been operated by a large cooperative of farmers. The facility ceased operations in early 2010, and the debt on the facility was long in default. The client acquired roughly $52 million in debt and underlying security agreements from certain co-lenders and then proceeded to foreclose on the collateral (a leasehold deed of trust on the facility and Missouri Chapter 100 bonds). In connection with the transaction, the client and the operator formed a joint venture for the operation and management of the biodiesel facility. Thompson Coburn attorneys, including Cheryl Kelly and Kathleen Kraft, assisted the client with the debt acquisition, joint venture, Chapter 100 bond issues, foreclosure and lease and operating agreement modifications.
TC Navigates Client Through Chapter 11 Bankruptcy of Primary Supplier
By Lauren Newman
In late September, Hussey Copper Ltd. ("Hussey") and its affiliates filed for Chapter 11 bankruptcy in Delaware. Hussey is one of the leading manufacturers of copper products in the United States and is the primary supplier to a TC client. Thompson Coburn attorneys Mark Bossi and Lauren Newman have been navigating the client through Hussey's bankruptcy and have assisted the client in negotiating a new supply arrangement with Hussey to insure a continuing supply of copper product for the client. Under this arrangement, the client will purchase and provide copper cathodes to Hussey under a complex bailment arrangement and Hussey will use the cathodes to manufacture product for the client. Hussey is seeking to sell substantially all of its assets through the bankruptcy, so TC is also working with the client to protect its interest throughout the sale process.
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